The impact of fintech on corporate risk-taking

Tian Liang, Zhanguang Chen, Chaobo Zhou and Haoyang Lu

International Review of Economics & Finance, 2025, vol. 103, issue C

Abstract: Drawing upon panel data from A-share listed firms in Shanghai and Shenzhen between 2011 and 2023, this paper explores how financial technology (fintech) influences corporate risk-taking and examines how economic policy uncertainty and managerial competence moderate this relationship. Empirical results indicate that fintech significantly enhances corporate risk-taking by triggering an “opportunity expectation effect,” meaning firms become more inclined to pursue growth opportunities. Fintech indirectly fosters corporate risk-taking through mitigating financing barriers and decreasing information gaps, thereby reinforcing the mechanism behind the opportunity expectation effect. Further analysis indicates that economic policy uncertainty negatively moderates the fintech–risk-taking relationship, whereas managerial capability serves as a positive moderator. Additionally, the heterogeneity analysis demonstrates that fintech's impact on encouraging risk-taking is particularly pronounced among enterprises located in China's eastern regions, private firms, and companies in low-tech sectors.

Keywords: Financial technology; Risk-taking; Economic policy uncertainty; Managerial competence (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025007622

DOI: 10.1016/j.iref.2025.104599

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